New CAG Report Alleges Rs 2,027 Crore Loss In Delhi Liquor Policy Under AAP Government, BJP Calls Kejriwal 'Kingpin Of Scam'

A recent audit report by the Comptroller and Auditor General (CAG) has highlighted severe irregularities in the implementation of Delhi's liquor regulation policy under the Aam Aadmi Party (AAP) government, resulting in a staggering Rs 2,027 crore loss to the state exchequer.

Covering the period between 2017-18 and 2020-21, the report criticised the excise department for significant lapses in governance and accountability. 

"The working of the excise department raises several questions about how it performs its duties. The total financial implication of the audit findings is about Rs 2,026.91 crore," stated the CAG report.

Key Violations Identified

The CAG outlined several discrepancies, including improper licensing processes and insufficient monitoring mechanisms. Licenses were granted to entities that failed to meet regulatory requirements, while retailers and wholesalers were improperly appointed. 

Additionally, liquor manufacturers and wholesalers were reportedly given discretionary pricing powers, which led to manipulations and further revenue losses.

"This discretion allowed L1 licensees (manufacturers and wholesalers) to manipulate prices to their own advantage," the report highlighted, attributing a significant decline in liquor sales and revenues to this loophole.

The audit revealed that Rs 890 crore was lost due to the failure to re-tender surrendered retail licenses, while another Rs 941 crore loss was linked to exemptions granted to zonal licensees.

The CAG also flagged flawed inventory tracking systems, where reliance on post-sale reconciliation rather than barcode tracking undermined data accuracy.

The 2021-22 excise policy, a focal point of the ongoing investigations by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), also came under scrutiny for bypassing necessary cabinet approvals and disregarding expert committee recommendations.

Political Fallout

The report has intensified the political clash between AAP and BJP. AAP spokesperson Priyanka Kakkar dismissed the findings as "manufactured and baseless," accusing the BJP of using false allegations for political gains. 

In contrast, BJP leaders seized the opportunity to attack AAP, with MP Anurag Thakur labelling then Delhi Chief Minister Arvind Kejriwal the “kingpin” of the liquor scam and BJP President J P Nadda criticising the “AAPda model of loot.”

As investigations continue, the findings of the CAG report have not only added to AAP’s challenges but also raised critical questions about transparency and governance in policy implementation.